Boston, MA 01/03/2014 (wallstreetpr) – A report appearing on The Information and which quotes sources close to Microsoft Corporation (NASDAQ:MSFT) and electronics maker Sony as well as ZTE indicated that the three companies are in separate talks which could add to the adoption of Windows Phone system.
However, the companies have so far abstained from commenting on the reported talks, further heightening speculations that a deal could be in the making. As usual, companies keep a tight lid when discussing business issues which could be jeopardized when leaked to outsider or better still, rivals.
It is easy to understand why Microsoft Corporation (NASDAQ:MSFT) would try to keep its Windows Phone system talks out of the media. The company is reported to be offering incentives to mobile device makers in efforts to have them adopt its mobile operating system. This is a game plan that rivals could easily counter.
The carrot in the deal
Among the carrots that Microsoft Corporation (NASDAQ:MSFT) is holding out for smartphone makers to pick up Windows Phone is reduced patent licensing fee. Many device makers use Microsoft Corporation (NASDAQ:MSFT) developed technologies to run their devices and this can be an important ammunition against rivals Google Inc (NASDAQ:GOOG) and Apple Inc (NASDAQ:AAPL) which manufacture Android and iOS.
At the moment Microsoft Corporation (NASDAQ:MSFT) trails Google Inc (NASDAQ:GOOG) and Apple Inc (NASDAQ:AAPL) in mobile operating system. It is however keen on turning tables on the rivals and there is no better way to do this than lure device makers with incentives.
The approach
The sources close to the ongoing talks between Microsoft Corporation (NASDAQ:MSFT) and Sony report that the companies have made significant progress which has so far culminated in the design of a prototype. Though much is not yet known about the talks between the Redmond software giant and China’s ZTE.
If these Windows Phone adoption deals are sealed, Sony and ZTE will be able to improve their positions in the smartphone market, especially through the offering of low-cost phones due to the subsidy from Microsoft Corporation (NASDAQ:MSFT).
To take on the surge of Android, Microsoft Corporation (NASDAQ:MSFT) seems to be interested in tapping the opportunities in the emerging markets and this explains why the company is luring device makers with strong footprint in emerging markets such as India, China and Africa.
